Alibaba folds its Tmall and Taobao businesses into a new reporting group

Alibaba Group Holding Limited (NYSE:BABA) announced on Thursday the establishment of Alibaba E-commerce Business Group.

The Hangzhou-based company said the businesses that will be integrated into the new group will include Taobao and Tmall Group, Alibaba International Digital Commerce Group, the 1688 Marketplace, Idle Fish and others, covering domestic and international supply chains. Mr. Fan Jiang has been appointed as the chief executive officer of this business group.

Q3 earnings recap: Alibaba (NYSE:BABA) reported 5% year-on-year revenue growth to $33.70 billion, surpassing analyst expectations of $33.47 billion. However, adjusted earnings per American Depositary Share were $2.15, below the anticipated $2.26, with adjusted net income declining by 9% to $5.20 billion. The Taobao and Tmall Group’s revenue rose by 1% to $14.11 billion, while the International Digital Commerce Group saw a significant 29% increase to $4.51 billion, driven by cross-border operations.

Notably, Alibaba’s Cloud Intelligence Group experienced a 7% revenue growth, largely due to advancements in public cloud products. Despite these gains, free cash flow declined by 70% year-over-year, which the company attributed to investments in cloud infrastructure and merchant refunds.

Shares of Alibaba (BABA) traded flat at $86.77 in the premarket session on Thursday. The e-commerce stock is up 12% on a year-to-date basis.